3237019 - The Valuation Method of Cost Estimate is Unexpected -- Purchase List Price

You simulate the material cost estimate, you see for some costed objects, the valuation method are Inventory Cost which you expect them to be Purchase List Price.

SAP Business ByDesign

1. Go to Inventory Valuation Work Center.
2. Go to New Cost Estimate View.
3. Enter Material AAA, Business Residence HH, Valid From DD.MM.YYYY (AAA is the ID of material, HH is the ID of Business Residence, DD.MM.YYYY is the date).
4. Click simulate.
5. In the results, you see the company is QQ and for costed object BBB, the valuation method is Purchase List Price(QQ is the ID of the company, BBB is the ID of material).

You expect the system to pick the List Price as valuation method, because there is a list price maintained for this company, you can check as below:

1. Go to Product Portfolio Work Center.
2. Go to List Prices View.
3. Select Active List Prices and search the material BBB.
4. You see there is a Released Price for company QQ. But system is not picking this as valuation method.

In the backend, when pricing API is called, it is called with supplier DDD(DDD is the supplier ID). You can see an active list price exists for the product BBB and supplier DDD combination only. FIN gets both the suppliers DDD and company QQ when they call the sourcing engine. Since the assumption is that the first row entry has the precedence, and first row corresponds to supplier DDD, they call the pricing engine for only DDD. Since there is no active list price for this supplier DDD and company QQ, nothing is returned.

You can check the maintained List prices as below:

1. Go to Product Portfolio Work Center.
2. Go to List Prices View.
3. Select Active List Prices and search the material BBB.
4. You see there are more than one line:

Select the first line and you see the company is QQ, in the List Price Information, the supplier is EEE(EEE is the supplier ID).

Select the second line and you see the company is PP, in the List Price Information, the supplier is DDD.

In short, there is no valid List Price of the combination of supplier DDD and company QQ, so the system is picking the lower level of the valuation method which is the Inventory Cost.

In the backend we have a BC setting which enable system to consider company specific List Price. Since this is optional functionality, you have to report an incident if it is needed and we will do the required settings in your system.

Material Cost Estimates

3234190

purchase list price. list price. inventory cost. valuation method. cost estimate. incorrect. unexpected. , KBA , AP-RC-SRE , Sourcing Engine , Problem